Paris
17 February 2017
Reporter: Drew Nicol

ESMA wades into DLT debate


The European Securities and Markets Authority (ESMA) has acknowledged a number of benefits that distributed ledger technology could bring, including greater post-trade efficiency, enhanced reporting capabilities and reduced costs.

In a report on the emerging technology, ESMA predicted that the early applications of DLT will focus on optimising processes in areas with low automation volumes and processes with minimum dependency on the existing legal framework.

ESMA also reviewed the potential challenges that market participants currently investing in DLT could face, including how the technology will sit within the current regulatory framework.

“The development of a new technology, such as DLT, does not liberate users from complying with the existing regulatory framework, which provides important safeguards to ensure the stability and proper functioning of financial markets,” ESMA stated.

Issues around interoperability, governance, privacy and risk creation were also flagged as “requiring further attention”.

The regulator added that, in the short term, it doesn’t see the current framework posing an obstacle to the progression of DLT.

More technology news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
InvestCloud builds on digital platform
17 November 2017 | Los Angeles | Reporter: Stephanie Palmer
Financial technology provider InvestCloud has added a new portfolio management tool to its digital platform
Citi pilots new platform for proxy voting
14 November 2017 | London | Reporter: Jenna Lomax
The platform, which is supported by Computershare, will be initially rolled out in the UK for the 2018 proxy season
WTW’s AMX chooses InvestCloud to boost asset management platform
07 November 2017 | London | Reporter: Stephanie Palmer
InvestCloud has been selected by Willis Towers Watson’s Asset Management Exchange to provide a digital interface to connect asset owners and management
R3 and SIA push for blockchain ecosystem
07 November 2017 | London | Reporter: Theo Andrew
The partnership will aim to speed up the global development of blockchain through SIAnet’s network of 600 nodes, provided to financial institutions, corporates and public administrations
BNP Paribas goes live on ASX corporate actions service
03 November 2017 | Sydney | Reporter: Stephanie Palmer
The new service offers straight-through delivery of corporate actions announcements, getting information to clients within seconds of the announcements being made
Lombard Risk provides regtech solution to OneSavings
01 November 2017 | London | Reporter: Jenna Lomax
The introduction of the programme at OneSavings Bank will help to streamline regulatory reporting, data management and analytics, according to Lombard Risk
DTCC enhances its European GTR for SFTR
25 October 2017 | New York | Reporter: Jenna Lomax
The new bolstered SFTR offering will be a significant addition to the existing reporting capabilities, affecting 45 regulators around the world who have access to GTR data
More technology news